New York — The Redmond Vole, after years of dismissing the notion, has finally announced plans to open its own chain of retail stores to display its own products, at a time when many other retailers are struggling in the economic downturn. The company aims to sell computers installed with Microsoft software and other products, Microsoft chief operating officer Kevin Turner said last week.
The software titan, is adopting a page from Apple’s playbook for its products such as the XBox game console, which has boosted sales by opening Apple stores across the globe and stocking its Genius Bar with tech experts.
Specific details about Microsoft’s plans for the stores were still scarce till last week. But the concept is to make it effortless for customers to purchase and check out Microsoft products, such as the XBox game console, Zune digital media player and Surface tabletop computer — as well as computer gear made by partners that run its software.
The stores will also publicize its frothcoming operating system Windows 7 and updates of Windows Live and Windows Mobile.
Microsoft also named David Porter, ex-Wal-Mart retail veteran, who will join the software company as the corporate vice president of retail stores from 16th February.
“I am excited about assisting consumers make more informed decisions about their PC and software purchases,” Porter said in a news release, which added that his first task would be to decide when, where and how to open the Microsoft-branded stores.
Skeptics questioned whether Microsoft’s strategy would work in a dismal retail climate. They also wondered whether its stores could compete with Apple’s, which seem to draw in passersby with the strength of the Death Star tractor beam in “Star Wars.”
“There are tremendous opportunities ahead for Microsoft to create a world-class shopping experience for our customers,” said Porter.
Porter spent 25 years at Wal-Mart Stores Inc. before joining DreamWorks Animation SKG in 2007, where he was head of worldwide product distribution.
Porter will report to Microsoft chief operating officer Kevin Turner.
“David’s unique and diverse background, coupled with his deep retail roots and distribution understanding, will be an invaluable asset in this long-term effort,” Turner said.
“We are working hard to transform the PC and Microsoft buying experience at retail.”
“Microsoft is putting the cart before the horse,” analyst Allan B. Krans with Technology Business Research wrote in a research note. “Stores do not draw consumers to products; innovative products bring consumers into stores.”
Last fall, Microsoft created its own concept retail environment at its Redmond campus. At the time, the company said the effort was intended at showing retailers how they could better market Microsoft products and was not an indication that it was going into the retail business itself.
“We are not planning to open stores, but we need to learn more about stores,” Microsoft general manager of worldwide retail services, said in a statement. “We need to take more of a leadership role.”
The company’s rival Apple already has high-profile stores located around the world.